As the advent of cryptocurrencies along with other significant Blockchain technologies continue disrupting the overall world of business finance, the business owners & entrepreneurs out there should avoid the temptation of jumping into the same without fully understanding the underlying concepts of the Blockchain technology & its applications in the world of business.
In the current era, it appears that the Blockchain technology is advancing rapidly in its full swing. Over the course of the period since its advent into the global markets, the overall Google search results for the term “Blockchain” have increased by around 250 percent.
Moreover, more public entities aim at adding “Blockchain” to the respective company names. So what is exactly all the hype about? What is the Blockchain technology and how are businesses going to profit from the same?
Consequently, an increasing number of business owners and entrepreneurs across the globe are considering investing in the leading cryptocurrencies and the Blockchain technology towards benefitting their businesses – both in short as well as long-term. Many investors nowadays also start their own Blockchain business to gain more profit.
What is the Blockchain Technology?
Towards understanding whether or not you should be investing in the cryptocurrencies, it is vital for you to understand the meaning of the Blockchain technology.
In simple terms, the Blockchain technology is the incorruptible, decentralized ledger from which the leading cryptocurrencies like Bitcoin and others operate. As such, these cryptocurrencies also become decentralized.
The blockchain is also referred to as the “append-only” ledger for the purpose of carrying out multiple transactions. This implies that the given decentralized ledger can be written onto with the help of new information.
At the same time, the previous information that is stored in blocks cannot be changed, edited, or adjusted. This can be easily achieved with the help of cryptography by making use of effective links to the content of the recently-added blocks with each block placed before it.
As such, any change or modification made to the previous block in the given chain would lead to the invalidation of the data in all the respective blocks after it.
Blockchains are also known to be consensus-driven. A great number of computer systems are connected to the given network. For reducing the ability of some attacker to add the transactions on the network maliciously, the ones who are adding the transactions to the particular Blockchain are required to solve some typical mathematical proof.
The overall beauty of the underlying Blockchain technology is that all the transactions that are recorded in the given chain are verified and published publicly.
Benefits of the Blockchain Technology to Business Enterprises
Before the advent of the revolutionary Blockchain technology, there was no way of securing & validating the ownership in the form of a digital asset or verifying the transaction in a public manner.
As such, the Blockchain technology serves to be the first-ever technology that allows the transferring of digital ownership in a trustless & decentralized manner. You should be well acknowledged about the Blockchain technology to integrate Blockchain into your business.
In fact, there are several leading organizations out there that aim at disrupting the given industry through the creation of digital tokens that are able to represent the overall ownership in the company.
While the Blockchain technology along with its supporting platforms is sure to evolve in the coming times, it is imperative to analyze the overall benefits of the Blockchain technology to the business enterprises. Here are some points that can help you understand the same:
#1 – Easy Access to the Capital
One of the biggest obstacles for any startup out there is raising the overall capital for turning their ideas into reality. There are several startups out there that do not have access to capital & fundraising with the help of the financial institutions. As such, most startup ideas fail to soar high without proper access to the capital and fundraising mechanisms.
In such a case, the Blockchain technology comes as a rescue for the startups as they are able to gain access to capital without facing any limitations or restrictions.
If you happen to be a startup entrepreneur, then you must realize that all your ideas might not be enough to generate ample funds. As such, the revolutionary Blockchain technology will help in offering the opportunity for fundraising for the given business idea if the digital currencies like Bitcoin and Ethereum operate independently in the given geographic location.
#2 – Supply Chain Verification
The Blockchain technology also serves useful when it comes to the overall supply chain management of businesses. Most of the entrepreneurs are aware of the fact that they might get effective returns when they manage the supply chain productively. They might not even come across the suppliers which might help them out.
With the help of the Blockchain technology, the business owners are able to come across the leading suppliers. For instance, if a particular device stops working properly, then with the help of the Blockchain technology, the business owners can observe the original suppliers and identify the given suspicious product.
The Blockchain technology can be helpful in the attestation of important things like avoiding the supply of counterfeiting parts, ensuring ethical sourcing, and so much more.
With the assurance of the overall transparency in the given supply chain, most of the business organizations out there can avoid major uncertainties that might have entered into the business scenario since the beginning. Moreover, it also helps the business organizations in confirming that the suppliers are able to meet the specific requirements.
#3 – The efficiency of Operations
As most of the business transactions get completed directly between the involved business parties with no presence of any intermediary party, the overall setting of the different transactions is made quickly.
Moreover, with the help of the digitized information, it enhances the overall ability to operate the “smart contracts” effectively. As such, this tends to trigger the overall processes automatically on the basis of the specific criteria that have been laid out in the given contract.
#4 – Auditability
On the given Blockchain network, the detail of each business transaction gets recorded subsequently. As such, it helps in providing auditability for the given set of assets between the involved parties.
It turns out to be specifically beneficial for the business organizations in which some relevant data source is required towards authenticating the given assets. In the present scenario, most companies out there are realizing the overall benefits of the Blockchain technology and using the same for tracking business transactions.
#5 – Ensuring Traceability
The overall tracking of the goods & products in the given supply chain can be beneficial when the business entities are seeking the tracing of the location of the respective components.
As such, relevant information with respect to the given component can be relayed to & from the new possible action of the business owner.
#6 – Overall Security
As each business transaction tends to be verified within the given network with the help of independent, complex, verified cryptography, the overall authenticity of the available information is assured.
The presence of assured information happens to be one of the most fundamental aspects of unlocking the benefits of IoT (Internet of Things). This serves to be a closed loop in the given process of autonomous cyber process linking of the assets to the respective actions.
#7 – Offering Reliable Feedback
Offering full traceability throughout the given lifecycle of the business transactions & assets, the manufacturers and asset designers are able to accommodate through-life business asset management into the given products towards making them highly effective. This can allow for the improved flow of information – right from shipping to maintenance, installation, and decommissioning of the products.
#8 – Identity Protection
Business organizations out there always remain in the threat from the potential hackers who always have their eyes upon breaching & stealing confidential data of such organizations. The data involved in leading business organizations is mostly associated with the end consumers including their financial & other personal information.
With the help of the Blockchain technology, the customers are able to exercise full control on the overall management and monitoring of their data by themselves such that only the involved business organizations & customers have access to the same.
Once the fully-integrated Blockchain technology is deployed completely, the organizations can keep & maintain the vital information secured. This reduces the overall chances of hacking or fraudulent usage of the user’s data.
#9 – Accountable Transactions
One of the primary benefits of the Blockchain technology is that it is entirely accountable as well as transparent in nature. All the business transactions that take place within the Blockchain network by making use of the public ledger, they are secured & encrypted without offering any authority to any third party or individual for manipulating the same.
Most of the business owners and organizations are not vigilant enough towards handling & tracking the transactions effectively. As such, with the help of the Blockchain technology, the available information can be validated and encrypted for enhanced accountability & transparency at the same time.
The Blockchain technology can help the business organizations in managing the overall business transactions effectively with enhanced security. As such, most businesses out there can consider making use of the innovative Blockchain technology.